Employee Satisfaction

To be able to better understand employee satisfaction in banks, we need to understand the word satisfaction firstly. Therefore, Mac Duffer (1989) depicts 'satisfaction is determined, in part, by the discrepancies resulting' [(Hassan, et al., 2013)]. Thus, employee satisfaction is the terminology used to describe whether employees are happy, contended and fulfilling their desires and needs at work. Many measures support that employee satisfaction is a factor in employee motivation, employee goal achievement and positive morale in the work place' (Susan M.Health, about. com; Chigot.P, 2005) [(Sageer, et al., 2012)]. While conducting my research, I note that many researchers came up with a different definition of employee satisfaction. Speitez, Kizilos and Nason (2004) define employee satisfaction as the feeling of the employee related to the job, or let of attitudes related to numerous aspect of job [(Hassan, et al., 2013)]. In addition to this, Locke (1976) define job satisfaction as a pleasurable or positive emotional state resulting from the appraisal of one's job or job expectation [(chahal, et al., 2013)]. Another researcher states that employee satisfaction is derived from the mental and physical satisfaction they experience in the environment they work in and from the work itself (Tadeka et al, 2005) [(Al-Hawary, et al., 2013)]. As a general definition, the employee satisfaction may be described as how pleased an employee is with his or her position of employment (Moyes, Shao & Newsom, 2008) [(Hassan, et al., 2013)]. Hence, job satisfaction is the key ingredient that leads to recognition, income, promotion and the achievement of other goals that lead to a feeling of fulfillment (Kaliski, 2007) [(Sinha, 2013)].

Employee Satisfaction in the non-banking sector:

Robbins (1996) defines job satisfaction as a general attitude towards one's job [(Khalizadeh, et al., 2013)]. On the other hand, (Gallardo, et al., 2010) states that job satisfaction is an employee attitudes that has been studied extensively; there have been few studies on that topic in the tourism sector in Spain, and even a few in Portugal. Moreover, (Chen, et al., 2006) adds that employee satisfaction model for higher education sector not only considers satisfaction levels but also degrees of importance in deciding the improvement strategy. Following this point of view, scholars suggest that job satisfaction in the verbal expression of incumbents' evaluations of their job. Others considers it a pleasant or positive emotional-stale appraisal from job's experiments (Lam et al, 2002; Froese and Pertokorpi, 2011; Judge et al, 2002). Still others regard, job satisfaction as 'the degree to which people like their jobs' (Abdulla et al, 2011) [(Khalizadeh, et al., 2013)]. (Sarker, et al., 2003) on his part say that earlier studies suggest that age is positively associated with job satisfaction while others use length of service, or tenure, as a predictor of job satisfaction level, but that tenure is. There is also significant relationship between tenure and facets of satisfaction (job, pay and fringe benefits, but the effect of tenure on satisfaction, significantly, modified by age). (Kuruuzum, et al., 2009) suggests that results shows that job involvement effective commitment and normative commitment increase job satisfaction, and job involvement affects affective and normative commitment. Thus, there should be attempts to build organizational commitment become important in increasing job satisfaction of the employees in the hospitality industry. According to (R.Testa & Mueller, 2009) work environment, cultural background and demographic characteristics combine in various ways to impact on service-worker job satisfaction. Robbins (2001) indicated that when employee feels happy about work related tasks in better way (Ahmad, et al., 2014). When employees believe in and trust their management it motivates and encourages employee's participation in decision making which improves employees effort, benefits their job satisfaction and commitment to work[(Appelbaum, et al., 2013)]. Based on this fact, (Appelbaum, et al., 2013) adds that employee's trust in management is an important determinant of their willingness to participate in decision making. Insufficient employee in decision making in turn leads to low level of employee job satisfaction and employee commitment. In contrast, owing to lack of trust in manangement, there will be high employee turnover. This in its turn will have a negative effect on both the performance of management and employee's welfare, job satisfaction and commitment. According to a study job satisfaction is one of the most research variables in industrial organizational psychology. Job satisfaction is an emotional state emerging from a cognitive appraisal of job experiences [(Hashmi, et al., 2014)]. In addition the findings suggest that the dimension of job satisfaction do not have a significant effect on contimuous commitment among the managers of large scale hotels [(Gunlu, et al., 2010)]. (Pantouvakis & Bouranta, 2013) states that further research should explore the role of job satisfaction on the subdimensions of service quality instead of overall service quality. It has been established that employee satisfaction exerts an important influence on customer satisfaction, as satisfied employeestend to be more productive, provide better services to customers and hence can significantly enhance business profitability. Some results gathered from certain studies covered indicated no significant relationship between self-rated performance, position and nationality were significant factors affecting some job satisfaction facets (i.e pay and benefits, professional development and work environment. In addition, age , gender and marital status had no effect on overall satisfaction or any of its facets) [(Ibrahim & Perez, 2014)]. Thus, Zeffane, Ibrahim & Al Helain (2008) explored the impact of job satisfaction on employee attendance and conduct. The authors used secondary data sets from job satisfaction and performance conducted in an utility company operating in the United Arab Emirates [(Ibrahim & Perez, 2014)]. Kitchard and Strauser (2001) proposed that satisfied employees develop high affective commitment for their firm [(Ahmad, et al., 2014)].

Studies undertaken to better understand Employees Satisfaction:
A number of studies have shown the human resource management practices, or in particular 'high-performance work practices' have a positive relationship with organizational performance (Huselid, 1995; Combs et al, 2006) [(Andreassi, et al., 2014)]. The early work of Brayfield and Crockett (1955) indicated that the relationship between job satisfaction and performance was not self-evident. They found high satisfaction to accompany either high or low productivity (performance) and conversely, low satisfaction to accompany either high or low productivity (performance). In contrast other studies have shown that job satisfaction was strongly associated with various organizational and individual outcomes such as absenteeism behaviors (Judge et al, 2001; Spector, 1997; Ostroff, 1992) [(Zeffane, et al., 2008)]. Another study supported the fact that the benefits as rewards, career opportunities and certain other benefits positively affects the satisfaction level of employers and reduces the turnover rates (Iversone. R; Amd Maguire, C; Ting. Y (1997) [(Saeed, et al., 2013)]. Thus recent research by Duraisingam et al (2009) and Chen et al (2008) concluded there is a well-established negative relationship between job satisfaction and turnover (Lee & Rwigema, 2007; Griffeth et al, 2000; Hayan et al, 2006; Mc-Culloch & Turban, 2007). The most studied work/job-related antecedent of turnover has been job satisfaction, which was typically been treated as an intervening variable. Most researchers agree that job satisfaction refers to the feelings one has about one's job (Locke, 1976; Robbins & Coulter, 1996) [(Tian-Foreman, 2009)]. Furthermore, numerous western studies have generally supported a negative relationship between job satisfaction and employee satisfaction turnover (Grifeth et al, 2000; Kinicki et al, 2002; Price, 1977, 2001), although in some cases it is not strongly related (Mobley et al, 1979; Wong et al, 2001) [(Tian-Foreman, 2009)]. In addition, a research was done in Europe to find out the relationship between working conditions or the environment to the job satisfaction of employees and found a significant positive relationship between them. Team building, employee involvement and training were negative relation was found between part time working and job satisfaction. Overall strong relationship was found between a good working environment and job satisfaction (Origo, F and Ragani, L, 2008). A prior research on banking sector of Lebanon shows that if the employees have job satisfaction then their performance will be enhanced and this satisfaction is achieved through various factors such as financial and non-financial factors, working conditions and supervision. Furthermore, another study of USA showed that there a positive linkage between working environment and the satisfaction level of employees [(Saeed, et al., 2013)]. Less has happened in the field of job satisfaction with respect to developing standardized measuring methods (Kristensen & Westland, 2001) and most of the studies done on job satisfaction are limited to specific countries or even specific organisation. Furthermore, these studies often report large differences in the level of job satisfaction between nations (Eskilden et al, 2004; Kristensen et al, 2002; Sousa-Poza & Sousa-Poza, 2000) and most of the time these differences are interpreted without taking into account that data are coming from different cultural settings [(Eskildsen & Kinstensen, 2010)].

Factors affecting Employee Satisfaction in the Organisation:
HRM Practices on Employee Satisfaction:
In order to better understand the mechanism through which human resource practices influence organizational performance, researchers have proposed that human resource practices influences worker attitudes such as commitment and motivation and work behaviors such as turnover and productivity (Huselid, 1995). In particular, Job satisfaction is related to job performance (Hanson et al, 2006; Judge et al, 2001; Riketta, 2008), retention (Tett & Meyer, 1993) and organizational commitment (Riketta, 2002) [(Andreassi, et al., 2014)]. Some of the factors of HRM practices are discussed below:

Compensation seems to be a positive as well as a negative tool for the growth of an organization. Thus, Lai (2011) argue that an efficient compensation system result in organizational growth and expansion and exhibit a positive relationship between employee satisfaction and job-based wages, skill-based pay and performance-based pay [(Al-Hawary, et al., 2013)]. But, according to Rad and Yarmohammadian (2006) employees shows less satisfaction with benefits, salaries and working conditions. Instead they slow high satisfaction with supervision and its style, hence showing a positive relationship [(Saeed, et al., 2013)]. On this point, Lalin Anik (2013) adds that rewarding individual employees can produce negative outcomes by eroding workplace cohesion, as employees becomes reluctant to share information with others even at the expense of reduced output [(Anik, et al., 2013)]. Borzaga & Depedri (2005) observe that, even in a sector characterized by low average salaries like the social services sector, employees are more satisfied when their wages increase up to a threshold, but not above that threshold [8]. Based on that point, Lalin Anik (2013) says that individual bonuses increase job satisfaction in part because employees see their time and effort being rewarded [(Anik, et al., 2013)]. This results to having good relationships with the collegues, high salary, good working conditions, training and education opportunities, career developments or any other benefits may be related with the increasing of employee satisfaction: Teylan (2009) [(Ceylan, et al., 2009)]. Lalin Anik (2013) states that from pay-per-performance to piece rate compensation schemes to profit sharing to bonuses, individual-based incentive can lead to improved employee outcomes [(Anik, et al., 2013)]. In addition, Green & Heywood (2008) say that performance- related pay allows opportunities for worker optimisation and does not crowd out intrinsic motivation, thus increasing overall satisfaction, satisfaction with pay, and satisfaction with job security whereas Pirtchard, Dunnette and Jargenson (1972) indicate that feelings of underpayment lead to decreased performance and low productivity. Moreover, Diaz- Serrance & Cabral Vieira (2005) show that low-pay worker are likely to have low-quality jobs and consequently less job satisfaction [(chahal, et al., 2013)]. The results show that compensation was ranked as the number one job element for job satisfaction and increase in salary for performance was ranked as the number one job element for motivation. Compensation is very valuable tool for retention and turnover. It is also a motivator for an employee in commitment with the organization which in result enhances attraction and retention (Zobal, 1998; Moncarz et al, 2009; Chin et al, 2002) [(Parvin & Kabir, 2011)].
Employee empowerment is a strategy and philosophy that enables employees to make decisions about their jobs. Employee empowerment helps employees own their work and take responsibilities for their results. Employee empowerment helps employee serve customers at the level of the organization when the customer interface exists. Empirical studies show that empowerment enhances self efficacy resulting in employee satisfaction and increased organizational commitment (Kim et al, 2012; Conger & Kanunga, 1998; Liden et al, 2000; Spreitzer et al, 1997; Bhatnagar, 2007). Namasivayam et al (2014) found that most research focuses on leader empowering behaviors or employee psychological empowerment as predictors of outcomes such as job satisafaction. Researchers have also shown that empowered employees are more likely to report higher job satisfaction and organizational commitment (Kim et al, 2012; Bhatnagar, 2007; Liden et al, 2000) [(Namasivayam, et al., 2014)]. A.Halepota & Shah (2011) said that employee job satisfaction is related to how people think, feel and perceive their jobs (Spector 1997). This definition may be directed to the employee attitudes and behaviors towards their job [(A.Halepota & Shah, 2011)]. Job satisfaction can be seen as a result of a behavioral cycle, or it can be seen as a cause of behavior; or it can be seen as part of regulation system in which evaluation of results lead to decision concerning whether or not changes are to be made (Thierry, 1997) [(Falkenbury & Schyns, 2007)]. Berry (1981) implied that for any organization to be successful there would be need for organizations to fulfill the needs of its employees [(Al-Hawary, et al., 2013)]. Therefore, Akbar et al (2011) confirms that empowered employees leads towards higher levels of employee satisfaction [(Al-Hawary, et al., 2013)]. According to Millier (2006), there is no limit for the employees to reach the full satisfaction and it may vary from employee to employee sometimes they need to change their behaviors in order to execute their duties more effectively to gain greater job satisfaction [(Sageer, et al., 2012)]. The early work of Brayfield and Crockett (1995) indicated that the relationship between job satisfaction and performance was not self-evident. They found high satisfaction to accompany either high or low productivity (performance) and conversely, low satisfaction to accompany either high or low productivity (performance). In contrast other studies have shown that job satisfaction was strongly associated with various organizational and individual outcomes such as absenteeism behaviors (Judge et al, 2001; Spector, 1997; Ostroff, 1992) [(Zeffane, et al., 2008)]. In addition, the concept Emotional Intelligence can affect an individual's success in an organization (Goleman, 2001). According to popular opinion and work place testimonials, Emotional Intelligence increases performance and productivity (Lam & Kirby, 2002) [(Chiva & Alegre, 2008)]. Wright and Cropanzano (2002) state 'this suggests that job satisfaction is based partially on what one feels and partially on what one thinks' [(Wright, 2006)].

It is also found that instead of revitilising the organization attrition created a phenomenon identified by Leonard Schlesinger and James Heskett as 'the cycle of failure' (Buelel 2006). The cycle involves a chain of consequences beginning with employee dissatisfaction and ending with organizational inefficiency, poor service quality, and high customer turnover and decreased profitability (Sengupta, 2011) [(Sengupta, 2011)]. In order to keep employee satisfied and retained them, the concept of appraisal can be of great use. Appraisal means appraising and rewarding an employee for his effort as well as great contribution in the firm. Appraisal can lead to employee dissatisfaction in the way of rewarding the employees. Organisations should reward each and every employee for their effort and not only most hardworking ones. Bearing in mind the cost associated with replacing employees, it is advisable for organisations to spend on employee retention programs and to start with, it will be rewarding to identify the specific job attributes that, if present, lead to employee satisfaction [(Sengupta, 2011)]. Job satisfaction is one of the most frequently studied characteristics in organizational behavior research. It has been labeled as a central variable in both research and theory of organizational behavior (Spector, 1997). It is commonly defined as 'a pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences' (Locke, 1976) [35] [1]. Job satisfaction and dissatisfaction not only depends on the nature of the job, it also depend on the expectation what's the job supply to an employee (Hussami, 2008) [(Parvin & Kabir, 2011)].

Since performance and productivity has an impact on employee satisfaction, so does turnover. Research has found that turnover can have a negative relationship on employee satisfaction. The most studied work/job-related antecedent of turnover has been job satisfaction, which has typically been treated as an interesting variable. Most researchers agree that job satisfaction refers to the feelings one has about one's job (Locke, 1976; Robbins & Coulter, 1996). Furthermore, numerous western studies have generally supported a negative relationship between job satisfaction and employee turnover (Griffeth et al, 2000; Kinicks et al, 2002; Price, 1997, 2001), although in some cases it is not strongly related (Mobley et al, 1979; Wong et al, 2001) [(Tian-Foreman, 2009)]. Although there is a well established negative link between job satisfaction and employee turnover, some researcher have argued that determinants of job satisfaction may differ between cultures and countries, thus affecting the relationship with employee turnover intention (Spector, 2000; Kirkman & Shapiro, 2001). Moreover, recent research by Duraisingarn et al (2009) and chen et al (2008) concluded there is a well-established negative relationship between job satisfaction and turnover (Lee & Rwigema, 2007; Griffeth et al, 2000; Hayes et al, 2006; Mc Culloch & Turban, 2007). The two most cried meta-analyses on causes and correlates of turnover, Cotton & Tuttle (1986) and Griffeth et al (2000) both reveal a moderate to strong relationship between job satisfaction and turnover [(Tian-Foreman, 2009)].

Other factors:
Gupta et al (2012) states that job satisfaction is a complex concept and difficult to measure objectively. The level of job satisfaction is affected by a wide range of variables relating to individual social, cultural, organizational and environmental factors. Job satisfaction is complex phenomenon with multi facets (Fisher & Locke, 1992; Xie & Johns, 2000); it is influenced by the factors like salary, working environment autonomy, communication, and organizational commitment (Lane, Esser, Holte and Anne, 2010; Vidal, Valle and Aragon, 2007; Fisher and Locke, 1992; Xie and Johns, 2000) [(Parvin & Kabir, 2011)]. Furthermore, Bolton believes that at corporate level, employee satisfaction is affected by many factors such as lighting, furniture, noise, temperature and other arrangement. It is also dependent on the physical environment and its effect on health and employee satisfaction [(G.S.Dangayach & M.L.Meena, 2012)]. Moreover, Robbins (2001) advocates that working conditions will influence job satisfaction, as employees are concerned with a comfortable physical work environment. In turn this will render a more positive level of job satisfaction [(Parvin & Kabir, 2011)]. Brikend Aziri, 2011 studied job satisfaction and found that job satisfaction is under the influence of a series of factors such as: the nature of work, salary, advancement opportunities, management, work groups and work conditions [(Sinha, 2013)]. Other studies examined the relationship of job satisfaction to a personal factors, such as personality disposition (kaplow, 1996), affectivity (Agho, 1993), ability to discuss their work at home (Bergmann et al, 1996), intent to leave (Moorhead, 1994), stress and demographic characteristics including age, education, experience (Belgen, 1993) [(Kavanaugh, et al., 2006)]. Sinha (2013) believes strongly that employees' morale is very important in the quest for high customer satisfaction levels. This is because satisfied employees have such positive energy and such willingness to give food services that the customers get at least a perceived better product or service, so that in turn become much more satisfied and loyal to the company [(Sinha, 2013)]. Chigot, P (2005) concludes that many measures purport that employee satisfaction is a factor in employee motivation, employee goal achievement and positive employee morale in the workplace. Employee satisfaction, while generally a positive in your organisation, can also be a downer if mediocre employee's stay because they are satisfied with your work environment [(G.S.Dangayach & M.L.Meena, 2012)].
Contribution and Importance of Employee satisfaction:
Employee's job satisfaction sentiments are important because they can determine collaborative effort. Consistent with this reasoning, Likert (1961) has argued that collaborative effort directed towards the organisations' goals is necessary for achievement of organizational objectives, with unhappy employees failing to participate (effectively) in such efforts [(Sageer, et al., 2012)]. Mirkamaly, Hayat, Nomzi and Jarahi (2010) states that to study job satisfaction two aspects are notable: first, human aspect that it is worthy to treat employees fairly and respectfully; second, behavioral aspect that considering job satisafaction can lead the behavior of employees so that it influence organizational functions and tasks and results in positive organizational behaviors [(Abbasi, et al., 2013)]. In addition, job satisfaction motivates employees to engage in their work. Naturally, a better engagement of employee can achieve organizational goals (Hackman, 1990). Due to this fact, one argument is that the supervisory support to the team mediates job satisfaction of the member (Griffin et al, 2001). Moreover, another similar view is that the effective management of conflicts in the team can lead to a better job satisfaction and thus the organizational performance (Tjosvold, 1990). Consequently, the role of communication in the team becomes a prelude to the job satisfaction of the member and success of the team (De Dreu and Weingart, 2003) [(Malik, 2013)].

Theories based on Employee Satisfaction:
Numerous theories associated to the delineation of employee satisfaction have been proposed by researchers. For example motivation-hygiene theory of Herberberg's (1959) states that factors creating satisfaction are dissimilar and separate from those which headed towards dissatisfaction factors leading towards satisfaction are named as motivators which include recognition advancement responsibility and achievement (Faikenbury & Schyns, 2007) [(Hassan, et al., 2013)]. Based on Maslow's theory, job satisfaction has been approached by some researchers from the perspective of need of fulfuillment (Kuhlen, 1963; Worf, 1970; Connad et al, 1985). According to Westover and Taylor (2010) Public Service Motivation (PSM) is also a motivator for job satisfaction, employees who are socially motivated and take public interest as their own are found to be satisfied with their job [(Saeed, et al., 2013)]. Leimbach (2006) call their approach 'Fulfillment approach' (or just, 'fulfillment') to differentiate it from the traditional definition of satisfaction (that is, satisfaction as being comfortable). It is our belief that, if you can identify and measure a more meaningful definition of satisfaction, you will find a closer casual relationship to organizational performance; we began our research by identifying the principal elements of fulfillment, empowerment and engagement [(Leimbach, 2006)]. Hogg et al (1998) comes up with the concept of Internal Marketing such as Communication Staff Training: Appraisal and Feedback, and Customer Consciousness to understand the impact of employee satisfaction in an organisation [(Al-Hawary, et al., 2013)]. Hence, the notion of internal Marketing (IM) those Berry et al (1976) have originally suggested to describe the company's effort to understand employees' needs ane increase their job satisfaction, so that customers could receive a better service [(Gounaris, 2008)].
To have e better level of employee satisfaction, it is important to analyse every factors of employee satisfaction. While conducting this research, we have noted that employee satisfaction can lead to high or low performance and productivity of the organisation depending on the level of employee satisfaction achieved by the firm. The importance of studying employee satisfaction can be attributed to the facts that job satisfaction is associated with increased increased productivity and organizational commitment, lower absenteeism and turnover, and ultimately, with increased organizational effectiveness (Ellickson & Logsdon, 2001) [(Sengupta, 2011)]. Moreover, customer contact employees are also important because their service performance represents the intangible component of the customer's perception of service quality (Price et al, 1995) which influences customer relationship and loyalty (Dimitriades, 2007) [(Gounaris & Boukis, 2013)]. Employee satisfaction is an integral part of an organisation. The organisation can run smoothly since the employees are totally satisfied with the salary, bonuses, rewards, appraisal, behavior and the environment as well. Communication also seems to be an important factor to bring employee satisfaction high.

Source: Essay UK - http://turkiyegoz.com/free-essays/finance/employee-satisfaction.php

Not what you're looking for?


About this resource

This Finance essay was submitted to us by a student in order to help you with your studies.


No ratings yet!

  • Order a custom essay
  • Download this page
  • Print this page
  • Search again

Word count:

This page has approximately words.



If you use part of this page in your own work, you need to provide a citation, as follows:

Essay UK, Employee Satisfaction. Available from: <http://turkiyegoz.com/free-essays/finance/employee-satisfaction.php> [19-12-18].

More information:

If you are the original author of this content and no longer wish to have it published on our website then please click on the link below to request removal:

Essay and dissertation help


致我们单纯的小美好 第3集 | [Vietsub] Laputa.Castle.In.The.Sky (1986).mp4 | Bécébégé